1. Strategy Development Blank Slide Pack
Reference: R3-A-C Released: 30/07/2015

2. Version Control
Version #
Updated By
Date Updated
Change Details

3. Project Plan
An example project plan which following the steps of the Procurement Journey is attached (in excel format).
Within your organisation you may use an alternative format/tool for project planning.
Things to remember are:

4. Stakeholder Map template
Impact of Commodity on Stakeholder
Low
Med
High
Impact on success
High
Low
Advocacy and Ownership
Support and Buy-in
Awareness
Commitment and Action
Understanding
Unaware
Med
Level of Engagement

5. UIG Welcome Pack
It is useful to issue a Welcome Pack to members either prior to or at the initial UIG meeting. The pack includes Terms of Reference of the group along with information on roles and responsibilities, core competencies and business conduct.
Things to remember are:

6. UIG Charter Group Objectives Scope & Activities Key Areas For Success
Measures
Milestones
Deliverables

7. Add Commodity Name here
UIG Membership
Add Commodity Name here
Name
Location
Dept.
Role
Tel.

8. Current Status of Commodity/Contracts
1 - Commodity Definition
Commodity Name
Definition
Source
Things to remember are:

9. Current Status of Commodity/Contracts
2 – Current Contracts
Contract Detail
Contract Scope
Expiry Date
Current Pricing
Things to remember are:
Current contract(s) status
Uptake of contract(s)
Contract(s) expiry
Spend covered by contract(s)
Product specification
Internal customers
Any agreements to hold prices for a certain amount of time (e.g. 6/12 months) and how price increases are negotiated (e.g. index linked to RPI or National Statistics);
History of price increases
Contract change notices (CCN’s) etc., which can be incorporated into the analysis of key commodity characteristics (as described in the next section of the toolkit).

10. Current Status of Commodity/Contracts
3 – Relevant Policies/ Processes
Policy detail
Reason of impact
Source
Things to remember are:
Consistency/Inconsistency of policy across the organisation or sector
Current Purchasing Procedures
Supplier Management
Service Levels and KPIs

11. Spend Analysis
Create your Spend Analysis and add it here. This is an example of one format
Things to remember are:
Consistency/Inconsistency of policy across the organisation or sector
Current Purchasing Procedures
Supplier Management
Service Levels and KPIs

12. Sustainability Aspects
Considerations
Actions
Social
Economic
Environmental

13. Classifying a Commodity
<Add Text for Details>
<INSERT COMMODITY>
<INSERT CATEGORY>
<Add Text for Details>
<Add Text for Details>
<Add Text for Details>
<Add Text for Details>

14. Commodity Tree - Example
Level 1
Level 2
Out Of Scope

15. Key Commodity Characteristics
Functionality
End User
Requirements
Organisation Requirements
Future Trends
Constraints

16. Market Summary Template
Factor
Findings from research
Market definition
Market Overview
Trade Associations
Key Suppliers
Market growth
Trends and developments
Supply market trends

17. External Data Sources Reference No. Source Dated Web address1)
<Add source/report title>
<Add date of report/article/quote>
<Add website address for future reference> 2) 3) 4) 5) 6) 7)

18. Probability/ Impact Result
Risk Register
Project Name / Contract Title
Risks identified as at -
Risk ID
Owner
Description of Risk
Probability/ Impact Result
Date of Assessment
Mitigating Actions
Next review date

19. Supplier Profile Analysis
X Supplier is the global leader in the provision of Y solutions
Organization and History
Strategy and Key Market Segments
Products, Service Range and Operations
Key Financials and Other Developments
Insert commodity specific Supplier Data. Use 1 slide for each of the top 5 suppliers.
You should base the top 5 on whether you think the market is global, European, or UK only

20. Porter’s 5 forces – Competitive Positioning
Threats of Substitutes
<Add Opportunity Notes>
<Add Comment>
<Add Opportunity Notes>
Power of Supplier
Competition in Industry
Power of Buyer
<Add Comment>
<Add Comment>
<Add Comment>
Threats of New Entrants
<Add Comment>
<Add Opportunity Notes>
<Add Opportunity Notes>

21. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Text

22. Add overall statement of findings here
PESTLEE Analysis
ECONOMIC
POLITICAL
SOCIAL-DEMOGRAPHIC
PEST LEE
Analysis
ETHICAL
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL
Add overall statement of findings here

23. Supply Market Analysis
Supplier Name
Annual Turnover in Scotland £000
Annual Turnover in UK £000
Current Expenditure £000
Percentage of turnover Scotland
Percentage of turnover UK
Sub-Total Spend with Top 10 Suppliers

24. Supplier Cost Drivers Cost Element
(e.g. Material, Labour, Sub-contract, Transport, Overheads…)
% of Overall Price
(Use estimates, market, supplier and existing analysis)
Source of Data
Data Confidence (Low, Medium, High)

25. Total Cost of Ownership: Considerations
Acquisition
Ownership
Operation
Disposal

26. Best Value Triangle – Identifying Opportunities
Improve
Specification
Restructure Relationships
Competition
Increase
Restructure
Supply Base
Reduce Consumption
Optimise Total
Supply Chain Costs
Reduce / Eliminate
Transactions
Total Cost Management
Purchase Demand Management
Supply Base Management
Reduce Total Life cycle
/ Ownership Costs
Cost
Quality
Service
Innovation
Sustainability
Consolidated Spend
Improve Specification
Consolidate Spend
Increase Competition
Restructure Supply Base
Optimise Supply Chain Costs
Reduce Total Ownership Costs
Reduce/Eliminate Transactions

27. Best Value Opportunity Assessment
Best Value – Tabled version
Best Value Opportunity Assessment
Description
Ease
Time
Benefits
Resources
Pros
Cons
Purchase Demand Management
“Have you considered this?”
Reduce Consumption
Consolidate Spend
Improve Specification
Supply Base Management
Restructure Relationships
Increase Competition
Restructure Supply Base
Total Cost Management
Optimise Total Supply Chain Costs
Reduce Total Ownership Costs
Reduce Transactions

28. Opportunity Assessment
Complete one slide for each opportunity identified using the Best Value Triangle
Opportunity Group (Link to BVT)
Opportunity Sub-Group (Link to BVT)
Description & Scope of Activity
Implementation
Resources
Estimate of Savings
Other Benefits Identified
Ease
Timing
Risks & Issues
Description
Assessment Result (Probability/Impact)
Date of Assessment
Mitigating Actions
Next Review
Next Steps/Recommendation

29. The current and future state relationship between buyer & the supplier
Current State
Possible Future State
BUYER PERSPECTIVE
LEVERAGE STRATEGIC
LEVERAGE STRATEGIC
Use competitive advantage to reduce total costs
Use enterprise-wide sourcing volumes as a negotiation tool
Use competitive advantage to reduce total costs
Use enterprise-wide sourcing volumes as a negotiation tool
Ensure long term availability of supply
Focus on relationship building and process integration with supplier
Ensure long term availability of supply
Focus on relationship building and process integration with supplier
Business Impact High
Business Impact High
ROUTINE BOTTLENECK
ROUTINE BOTTLENECK
Simplify and streamline acquisition process to achieve efficiencies / cost reduction
Reduce number of suppliers and simplify sourcing process
Reduce/eliminate company’s risk and exposure to price increases/supply disruption
Secure existing sources of supply and search for possible substitutes
Simplify and streamline acquisition process to achieve efficiencies / cost reduction
Reduce number of suppliers and simplify sourcing process
Reduce/eliminate company’s risk and exposure to price increases/supply disruption
Secure existing sources of supply and search for possible substitutes
Market Challenge High
Market Challenge High
SUPPLIER PERSPECTIVE
DEVELOPMENT CORE
DEVELOPMENT CORE
Nurture & Expand Business
Seek opportunities
Develop Business together
Defend vigorously expand if possible
Potential long term relationship
Nurture & Expand Business
Seek opportunities
Develop Business together
Defend vigorously expand if possible
Potential long term relationship
Account attractiveness High
NUISANCE EXPLOITABLE
Account attractiveness High
NUISANCE EXPLOITABLE
Give low attention
Lose without pain
Change supplier
Raise attractiveness
Exploit commercially
Risk losing
High Risk
Give low attention
Lose without pain
Change supplier
Raise attractiveness
Exploit commercially
Risk losing
High Risk
Relative Value of Business
Relative Value of Business

30. Recommendation & Justification
Options Decision Matrix & Summary
Complete the table below with the various options available for Procurement Route, OJEU Procedure (if applicable), Lotting Strategy and Suppliers (examples provided) and detail the benefits/concerns associated with each before recommending a preferred option with justification.
Option 1
Option 2
Option 3
Option 4
Recommendation & Justification 1
Procurement Route
Not applicable
Do nothing
Use existing framework
Develop bespoke contract
Benefits & Concerns 2
OJEU Procedure
Open
Restricted
Competitive Dialogue
Other

31. Recommendation & Justification
Option 1
Option 2
Option 3
Option 4
Recommendation & Justification 3
Lots
Not applicable
1 Lot
Geographical
Product / Service
Benefits & Concerns 4
Suppliers Per Lot
1 Supplier
3 – 5 Suppliers
5 + Suppliers

32. Executive Summary Key Findings
Benchmarking and Opportunities, Options Considered
Recommendations and key actions
Benefits, Justification and projected savings
Key Risks and Resource Implications